HOUSTON, Aug. 2, 2017 /PRNewswire/ - Spectra Energy
Partners, LP (NYSE: SEP) today reported net income of $367 million, including net income from
controlling interests of $328
million, for the second quarter ended June 30, 2017, with diluted earnings per limited
partner unit of $0.75. The second
quarter included non-recurring special items of $29 million, which decreased diluted earnings per
limited partner unit by $0.09.
HIGHLIGHTS:
- Continued earnings and cash flow growth from capital expansions
and solid base business performance in line with expectations
- Sabal Trail placed into service, on time and on budget;
continued advancement of $3.0 billion
of commercially secured projects
- Announced 39th consecutive quarterly distribution increase,
representing a 7.5% increase over the distribution declared in
August 2016
Second quarter 2017 ongoing distributable cash flow (DCF) was
$371 million, compared with
$281 million in the prior-year
quarter. Distributions per limited partner unit for second quarter
2017 were $0.71375, compared with
$0.66375 per limited partner unit in
the second quarter of 2016.
For the quarter, ongoing earnings before interest, taxes,
depreciation and amortization (EBITDA) were $548 million, compared with $448 million in the prior-year quarter. Ongoing
net income from controlling interests was $357 million for the quarter, or $0.84 diluted earnings per limited partner unit,
compared with $293 million, or
$0.73 diluted earnings per limited
partner unit in the prior-year quarter. Net income from controlling
interests was $328 million for the
quarter, or $0.75 diluted earnings
per limited partner unit, compared with $287
million, or $0.71 diluted
earnings per limited partner unit in the prior-year quarter.
PRESIDENT COMMENT
"Spectra Energy Partners achieved another solid quarter thanks
to the reliability and strength of our fee-based business model
with no direct commodity exposure and virtually no volume exposure,
and further enhanced by the successful execution of our expansion
program. The 39th consecutive quarterly cash distribution increase
we announced earlier today demonstrates our continued ability to
generate both the cash flow and growth we promised investors," said
Bill Yardley, chairman and president
of Spectra Energy Partners.
"We also made significant progress in advancing SEP's 15
commercially secured projects totaling more than $8 billion in gross expansion opportunity through
2019 – most notably, by placing the Sabal Trail project into
service in early July, on time and on budget. The strength of our
business model and expansion program continues to give us
confidence in our ongoing ability to deliver on the financial
commitments we made to our investors," continued Yardley.
SEGMENT RESULTS
U.S. Transmission
Ongoing EBITDA from U.S. Transmission was $497 million in the second quarter 2017, compared
with $412 million for the second
quarter of 2016, and reflects increased earnings from expansion
projects including AIM, Sabal Trail, Gulf Markets and NEXUS. The
2017 and 2016 ongoing results exclude special items of $11 million and $6
million in expenses respectively, both related to the 2016
Texas Eastern pipeline incident. The 2017 ongoing results also
exclude $6 million in expense,
primarily from merger-related costs.
Liquids
Ongoing EBITDA from Liquids was $65
million in the second quarter 2017, compared with
$58 million in the second quarter
2016. These results reflect expansion revenues from the Express
Enhancement project placed into service in October 2016 and higher transportation revenues
due to higher average tariff rates on the Express Pipeline,
partially offset by higher operating costs. The 2017 period
excludes a special item of $1 million
for merger-related costs.
Other
Ongoing net expenses from "Other" were $14 million and $22
million in the second quarters 2017 and 2016, respectively.
The 2017 period excludes special items of $11 million, primarily from merger-related
costs.
Interest Expense
Interest expense was $60 million in the second quarter 2017, compared
with $56 million in the second
quarter 2016, reflecting higher average long-term debt balances in
2017, partially offset by higher capitalized interest.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy Partners as of
June 30, 2017 was $7.9 billion, with available liquidity of
$1.3 billion.
This year, Spectra Energy Partners has received net proceeds of
$85 million through its "At the
Market" (ATM) equity issuance program.
Including contributions from noncontrolling interests, Spectra
Energy Partners has $1.8 billion of
capital expansion spending planned in 2017, which is expected to be
funded through a combination of debt, equity issued primarily
through its ATM program, and return of capital from joint venture
asset-level financings. Including contributions from noncontrolling
interests of $126 million, total
capital spending for the three months ended June 30, 2017, was $585
million, consisting of $532
million of growth capital expenditures and $53 million of maintenance capital
expenditures.
EXPANSION PROJECT UPDATES
Commercially Secured Projects
Sabal Trail was placed into commercial service in early
July with 400,000 dekatherms per day (Dth/d) of firm transportation
available to meet the peak cooling season needs of Florida Power and Light and an additional
300,000 Dth/d of firm delivery available to serve Duke Energy's new
natural gas-fired generation later this year. The 515-mile pipeline
will have the capacity to deliver approximately 1.1 billion cubic
feet of natural gas per day to the Southeast U.S. once approved
future expansions are completed. The successful completion of
Sabal Trail demonstrates Spectra Energy Partner's ability to
navigate rigorous environmental permitting processes while working
with landowners and other key stakeholders.
The Lebanon Extension and phase two of the Gulf
Markets Expansion were placed into service earlier this week,
several months ahead of schedule and on budget, again demonstrating
the success of SEP's project execution model. Construction
continues on Access South and Adair Southwest, which
are on track for in-service later this year.
Construction also continues on Atlantic Bridge, with
initial in-service of the Connecticut facilities scheduled for the
fourth quarter of 2017. Full in-service of all project facilities
is expected in the second half of 2018.
The Bayway Lateral project received FERC approval in
July, with construction expected to begin in early August to
achieve its targeted in-service in the first half of 2018.
PennEast and STEP remain on track for their
targeted in-service dates in 2018 as does Stratton Ridge with its 2019 in-service
date.
Approval of
the NEXUS and TEAL projects
remains pending before the FERC due to a lack of
quorum. While NEXUS' and TEAL's certificate
applications remain pending, the record supporting the Final
Environmental Impact Statement and Applications are
complete and ready for prompt FERC approval once a quorum is
restored. As previously indicated, since the quorum at FERC
was not in place by the end of June and the FERC Certificates
remain pending before the Commission, a 2017 in-service date is not
expected. Once the expected approval is received, a revised 2018
in-service date will be identified.
New to SEP's execution backlog are the Texas-Louisiana Market
Projects and the Lambertville-East project that
demonstrate SEP's ability to leverage its existing asset footprint
and expand its demand-pull business profile. The combined
$20 million Texas-Louisiana Market
projects are a 157,000 Dth/d expansion of Texas Eastern to serve
demand-pull markets along the Gulf Coast region and the
$45 million Lambertville-East
project will provide 60,000 Dth/d of firm transportation service on
Texas Eastern's Zone M3. Both projects are expected to be placed
into service in the second half of 2019.
Development Projects.
In June, Access Northeast withdrew its pre-filing
application from the FERC Docket to recognize the lack of a uniform
energy policy in New England that is required to achieve full
regional support of natural gas infrastructure for electric
generation. While this procedural action places the FERC process on
hold, Access Northeast's partners continue to actively pursue a
viable commercial and operational model to address New England's
need for additional natural gas pipeline infrastructure.
Earlier this week Texas Eastern announced an open season for its
Enhanced Electric Reliability Project to serve
electric generators in the PJM Interconnection (PJM) and other
demand markets within the region. Given the 40 power generators in
close proximity to Texas Eastern, we are well positioned to serve
this growing market need and deliver reliability to PJM as the
region is seeing an increasing dependence upon natural gas with the
retirements of coal and nuclear resources. The open season
concludes in mid-September.
ADDITIONAL INFORMATION
Additional information about second quarter 2017 earnings can be
obtained via the Spectra Energy Partners website:
www.spectraenergypartners.com.
Spectra Energy Partners will host a joint webcast with Enbridge
Inc. (TSX, NYSE: ENB) on August 3 at
8 a.m. CT. The webcast will be
available via the Spectra Energy Partners Events &
Presentations page, and the conference call can be accessed by
dialing (877) 930-8043 in North
America or (253) 336-7522 outside North America. The participant passcode is
51403910#.
A replay of the call will be available via the Spectra Energy
Partners Events & Presentations page, or by dialing (855)
859-2056 in North America or (404)
537-3406 outside North America and
using the above passcode.
The conference call format will include prepared remarks from
the executive team followed by a question and answer session for
the analyst and investor community only. Spectra Energy Partners'
media and investor relations teams will be available after the call
for any additional questions.
Non-GAAP Financial Measures
We use ongoing net income from controlling interests as a
measure to evaluate operations of the partnership. This measure is
a non-GAAP financial measure as it represents net income from
controlling interests, excluding special items. Special items
represent certain charges and credits which we believe will not be
recurring on a regular basis. We believe that the presentation of
ongoing net income from controlling interests provides useful
information to investors, as it allows investors to more accurately
compare our ongoing performance across periods. The most directly
comparable GAAP measure for ongoing net income from controlling
interests is net income from controlling interests.
We use earnings from continuing operations before interest,
income taxes, and depreciation and amortization (EBITDA) and
ongoing EBITDA, non-GAAP financial measures, as performance
measures for Spectra Energy Partners, LP. Ongoing EBITDA represents
EBITDA, excluding special items. We believe that the presentation
of EBITDA and ongoing EBITDA provides useful information to
investors, as it allows investors to more accurately compare
Spectra Energy Partners, LP's performance across periods. The most
directly comparable GAAP measure for EBITDA and ongoing EBITDA for
Spectra Energy Partners, LP is net income.
The primary performance measures used by us to evaluate segment
performance are segment EBITDA and Other EBITDA. We consider
segment EBITDA and Other EBITDA, which are the GAAP measures used
to report segment results, to be good indicators of each segment's
operating performance from its continuing operations as they
represent the results of our segments' operations before
depreciation and amortization without regard to financing methods
or capital structures. Our segment EBITDA and Other EBITDA may not
be comparable to similarly titled measures of other companies
because other companies may not calculate EBITDA in the same
manner.
We also use ongoing segment EBITDA as a measure of performance.
Ongoing segment EBITDA is a non-GAAP financial measure, as it
represents reported segment EBITDA, excluding special items. We
believe that the presentation of ongoing segment EBITDA provides
useful information to investors, as it allows investors to more
accurately compare a segment's ongoing performance across periods.
The most directly comparable GAAP measure for ongoing segment
EBITDA is segment EBITDA.
We also present Distributable Cash Flow (DCF), which is a
non-GAAP financial measure. We believe that the presentation of DCF
provides useful information to investors, as it represents the cash
generation capabilities of the partnership to support distribution
growth. We also use ongoing DCF, which is a non-GAAP financial
measure, as it represents DCF, excluding the cash effect of special
items. The most directly comparable GAAP measure for DCF and
ongoing DCF is net income. We also use DCF coverage, which is a
non-GAAP financial measure, as it represents DCF divided by
distributions declared on partnership units. The most directly
comparable GAAP measure for DCF coverage is Earnings-Per-Unit
(EPU).
The non-GAAP financial measures presented in this press release
should not be considered in isolation or as an alternative to
financial measures presented in accordance with GAAP. These
non-GAAP financial measures may not be comparable to similarly
titled measures of other partnerships because other partnerships
may not calculate these measures in the same manner.
Forward-Looking Statements
This release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are based on our beliefs and assumptions. These
forward-looking statements are identified by terms and phrases such
as: anticipate, believe, intend, estimate, expect, continue,
should, could, may, plan, project, predict, will, potential,
forecast, and similar expressions. Forward-looking statements
involve risks and uncertainties that may cause actual results to be
materially different from the results predicted. Factors that could
cause actual results to differ materially from those indicated in
any forward-looking statement include, but are not limited to:
state, federal and foreign legislative and regulatory initiatives
that affect cost and investment recovery, have an effect on rate
structure, and affect the speed at and degree to which
competition enters the natural gas and oil industries;
outcomes of litigation and regulatory investigations, proceedings
or inquiries; weather and other natural phenomena, including the
economic, operational and other effects of hurricanes and storms;
the timing and extent of changes in commodity prices, interest
rates and foreign currency exchange rates; general economic
conditions, including the risk of a prolonged economic slowdown or
decline, or the risk of delay in a recovery, which can affect the
long-term demand for natural gas and oil and related services;
potential effects arising from terrorist attacks and any
consequential or other hostilities; changes in environmental,
safety and other laws and regulations; the development of
alternative energy resources; results and costs of financing
efforts, including the ability to obtain financing on favorable
terms, which can be affected by various factors, including credit
ratings and general market and economic conditions; increases in
the cost of goods and services required to complete capital
projects; declines in the market prices of equity and debt
securities and resulting funding requirements for defined benefit
pension plans; growth in opportunities, including the timing and
success of efforts to develop U.S. and Canadian pipeline, storage,
gathering, processing and other related infrastructure projects and
the effects of competition; the performance of natural gas and oil
transmission and storage, distribution, and gathering and
processing facilities; the extent of success in connecting natural
gas and oil supplies to gathering, processing and transmission
systems and in connecting to expanding gas and oil markets; the
effects of accounting pronouncements issued periodically by
accounting standard-setting bodies; conditions of the capital
markets during the periods covered by forward-looking statements;
and the ability to successfully complete merger, acquisition or
divestiture plans; regulatory or other limitations imposed as a
result of a merger, acquisition or divestiture; and the success of
the business following a merger, acquisition or divestiture. These
factors, as well as additional factors that could affect our
forward-looking statements, are described under the headings "Risk
Factors" and "Cautionary Statement Regarding Forward-Looking
Information" in our 2016 Form 10-K, filed on February 24, 2017, and in our other filings made
with the Securities and Exchange Commission (SEC), which are
available via the SEC's website at www.sec.gov. In light of these
risks, uncertainties and assumptions, the events described in the
forward-looking statements might not occur or might occur to a
different extent or at a different time than we have described. All
forward-looking statements in this release are made as of the date
hereof and we undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Spectra Energy Partners
Spectra Energy Partners, LP is
one of the largest pipeline master limited partnerships in
the United States and connects
growing supply areas to high-demand markets for natural gas and
crude oil. These assets include more than 15,000 miles of
transmission pipelines, approximately 170 billion cubic feet of
natural gas storage, and approximately 5.6 million barrels of crude
oil storage. Spectra Energy Partners, LP is traded on the
New York stock exchange under the
symbol SEP; information about the company is available on its
website at www.spectraenergypartners.com.
FOR FURTHER
INFORMATION PLEASE CONTACT:
|
Media:
|
Michael
Barnes
|
|
Toll Free: (877)
496-8142
|
|
michael.barnes@enbridge.com
|
|
|
Analysts and
Investors:
|
Roni
Cappadonna
|
|
(713) 627-4778 or
Toll Free: (800) 481-2804
|
|
roni.cappadonna@enbridge.com
|
Spectra Energy
Partners, LP
|
Quarterly
Highlights
|
June
2017
|
(Unaudited)
|
(In millions, except
per-unit amounts)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
695
|
|
$
|
618
|
|
$
|
1,395
|
|
$
|
1,242
|
|
Total Reportable
Segment EBITDA
|
|
544
|
|
|
464
|
|
|
1,089
|
|
|
931
|
|
Net Income –
Controlling Interests
|
|
328
|
|
|
287
|
|
|
645
|
|
|
585
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
$
|
480
|
|
$
|
406
|
|
$
|
959
|
|
$
|
817
|
|
Liquids
|
|
64
|
|
|
58
|
|
|
130
|
|
|
114
|
|
|
Total Reportable
Segment EBITDA
|
|
544
|
|
|
464
|
|
|
1,089
|
|
|
931
|
|
Other
EBITDA
|
|
(25)
|
|
|
(22)
|
|
|
(71)
|
|
|
(42)
|
|
|
Total Reportable
Segment and Other EBITDA
|
$
|
519
|
|
$
|
442
|
|
$
|
1,108
|
|
$
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
PARTNERS'
CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
$
|
0.71375
|
|
$
|
0.66375
|
|
$
|
1.41500
|
|
$
|
1.31500
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited Partner
Units
|
|
310
|
|
|
298
|
|
|
310
|
|
|
292
|
|
|
General Partner
Units
|
|
6
|
|
|
6
|
|
|
6
|
|
|
6
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
$
|
341
|
|
$
|
275
|
|
$
|
697
|
|
$
|
646
|
CAPITAL AND
INVESTMENT EXPENDITURES (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
– U.S. Transmissions
|
|
|
|
|
|
|
$
|
1,350
|
|
$
|
986
|
|
Capital Expenditures
– Liquids
|
|
|
|
|
|
|
|
11
|
|
|
37
|
|
Investment
Expenditures
|
|
|
|
|
|
|
|
158
|
|
|
112
|
|
|
Total
|
|
|
|
|
|
|
$
|
1,519
|
|
$
|
1,135
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
TRANSMISSION
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
592
|
|
$
|
529
|
|
$
|
1,188
|
|
$
|
1,067
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
201
|
|
|
183
|
|
|
401
|
|
|
355
|
|
Other Income and
Expenses
|
|
89
|
|
|
60
|
|
|
172
|
|
|
105
|
|
EBITDA
|
$
|
480
|
|
$
|
406
|
|
$
|
959
|
|
$
|
817
|
|
|
|
|
|
|
|
|
|
|
|
|
LIQUIDS
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
103
|
|
$
|
89
|
|
$
|
207
|
|
$
|
175
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
39
|
|
|
31
|
|
|
76
|
|
|
62
|
|
Other Income and
Expenses
|
|
▬
|
|
|
▬
|
|
|
(1)
|
|
|
1
|
|
EBITDA
|
$
|
64
|
|
$
|
58
|
|
$
|
130
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (b)
|
|
254
|
|
|
233
|
|
|
263
|
|
|
233
|
|
Platte PADD II
Deliveries, MBbl/d
|
|
136
|
|
|
143
|
|
|
140
|
|
|
132
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.34
|
|
|
1.29
|
|
|
1.33
|
|
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2016
|
Debt
|
|
|
|
|
|
|
$
|
7,946
|
|
$
|
7,213
|
Actual Units
Outstanding
|
|
|
|
|
|
|
|
317
|
|
|
315
|
(a) Excludes
contributions received from noncontrolling interests of $416
million in 2017 and $278 million in 2016.
|
(b) Thousand barrels
per day.
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In
millions)
|
Reported - These
results include the impact of special items
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
Revenues
|
$
|
695
|
|
$
|
618
|
|
$
|
1,395
|
|
$
|
1,242
|
Operating
Expenses
|
|
352
|
|
|
313
|
|
|
720
|
|
|
613
|
Operating
Income
|
|
343
|
|
|
305
|
|
|
675
|
|
|
629
|
Other Income and
Expenses
|
|
89
|
|
|
61
|
|
|
172
|
|
|
108
|
Interest
Expense
|
|
60
|
|
|
56
|
|
|
116
|
|
|
112
|
Earnings Before
Income Taxes
|
|
372
|
|
|
310
|
|
|
731
|
|
|
625
|
Income Tax
Expense
|
|
5
|
|
|
5
|
|
|
10
|
|
|
9
|
Net Income
|
|
367
|
|
|
305
|
|
|
721
|
|
|
616
|
Net Income -
Noncontrolling Interests
|
|
39
|
|
|
18
|
|
|
76
|
|
|
31
|
Net Income -
Controlling Interests
|
$
|
328
|
|
$
|
287
|
|
$
|
645
|
|
$
|
585
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
June 30,
2016
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
$
|
559
|
|
$
|
660
|
Investment and Other
Assets
|
|
|
|
|
|
|
|
4,623
|
|
|
4,469
|
Net Property, Plant
and Equipment
|
|
|
|
|
|
|
|
17,257
|
|
|
16,092
|
Regulatory Assets and
Deferred Debits
|
|
|
|
|
|
|
|
443
|
|
|
385
|
|
Total
Assets
|
|
|
|
|
|
|
$
|
22,882
|
|
$
|
21,606
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
$
|
2,392
|
|
$
|
1,779
|
Long-term
Debt
|
|
|
|
|
|
|
|
6,214
|
|
|
6,223
|
Deferred Credits and
Other Liabilities
|
|
|
|
|
|
|
|
198
|
|
|
200
|
Equity
|
|
|
|
|
|
|
|
14,078
|
|
|
13,404
|
|
Total Liabilities
and Equity
|
|
|
|
|
|
|
$
|
22,882
|
|
$
|
21,606
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(Dollars in millions,
except where noted)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Income
|
$
|
367
|
|
$
|
305
|
|
$
|
721
|
|
$
|
616
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
60
|
|
|
56
|
|
|
116
|
|
|
112
|
|
Income Tax
Expense
|
|
5
|
|
|
5
|
|
|
10
|
|
|
9
|
|
Depreciation and
Amortization
|
|
87
|
|
|
77
|
|
|
172
|
|
|
154
|
|
Foreign Currency
(Gain) Loss
|
|
▬
|
|
|
1
|
|
|
▬
|
|
|
▬
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Party Interest
Income
|
|
▬
|
|
|
2
|
|
|
1
|
|
|
2
|
EBITDA
|
|
519
|
|
|
442
|
|
|
1,018
|
|
|
889
|
Add::
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Equity
Investments
|
|
(40)
|
|
|
(30)
|
|
|
(78)
|
|
|
(57)
|
|
Distributions from
Equity Investments (a)
|
|
40
|
|
|
32
|
|
|
78
|
|
|
97
|
|
Other
|
|
(1)
|
|
|
1
|
|
|
▬
|
|
|
3
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
Investments
|
|
60
|
|
|
56
|
|
|
116
|
|
|
112
|
|
Equity
AFUDC
|
|
48
|
|
|
29
|
|
|
93
|
|
|
46
|
|
Net Cash Paid for
Income Taxes
|
|
3
|
|
|
4
|
|
|
8
|
|
|
5
|
|
Distributions to
non-controlling Interests
|
|
13
|
|
|
8
|
|
|
25
|
|
|
15
|
|
Maintenance Capital
Expenditures
|
|
53
|
|
|
73
|
|
|
79
|
|
|
108
|
Total Distributable
Cash Flow
|
$
|
341
|
|
$
|
275
|
|
$
|
697
|
|
$
|
646
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
(Unaudited)
|
(In
millions)
|
|
|
Three Months
Ended
|
|
June 30,
2017
|
|
June 30,
2016
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
Net
Income
|
$
|
367
|
|
$
|
(29)
|
|
$
|
396
|
|
$
|
305
|
|
$
|
(6)
|
|
$
|
311
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
60
|
|
-
|
|
60
|
|
56
|
|
-
|
|
56
|
|
Income tax
expense
|
5
|
|
-
|
|
5
|
|
5
|
|
-
|
|
5
|
|
Depreciation and
amortization
|
87
|
|
-
|
|
87
|
|
77
|
|
-
|
|
77
|
|
Foreign currency
loss
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
EBITDA
|
519
|
|
(29)
|
|
548
|
|
442
|
|
(6)
|
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
(40)
|
|
-
|
|
(40)
|
|
(30)
|
|
-
|
|
(30)
|
|
Distributions from
equity investments (a)
|
40
|
|
-
|
|
40
|
|
32
|
|
-
|
|
32
|
|
Non-cash impairment
at Ozark Gas Gathering
|
(1)
|
|
-
|
|
(1)
|
|
1
|
|
-
|
|
1
|
|
Other
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
60
|
|
-
|
|
60
|
|
56
|
|
-
|
|
56
|
|
Equity
AFUDC
|
48
|
|
-
|
|
48
|
|
29
|
|
-
|
|
29
|
|
Net cash paid for
income taxes
|
3
|
|
|
|
3
|
|
4
|
|
-
|
|
4
|
|
Distributions to
non-controlling interests
|
13
|
|
-
|
|
13
|
|
8
|
|
-
|
|
8
|
|
Maintenance capital
expenditures
|
53
|
|
1
|
|
52
|
|
73
|
|
-
|
|
73
|
Total
Distributable Cash Flow
|
$
|
341
|
|
$
|
(30)
|
|
$
|
371
|
|
$
|
275
|
|
$
|
(6)
|
|
$
|
281
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Earnings Reconciliation
|
June 2017
Quarter-to-Date
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
480
|
|
$
|
(17)
|
A
|
$
|
497
|
Liquids
|
|
|
64
|
|
|
(1)
|
B
|
|
65
|
|
|
Total Reportable
Segment
EBITDA
|
|
|
544
|
|
|
(18)
|
|
|
562
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(25)
|
|
|
(11)
|
B
|
|
(14)
|
|
|
Total Reportable
Segment and other EBITDA
|
|
$
|
519
|
|
$
|
(29)
|
|
$
|
548
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
519
|
|
$
|
(29)
|
|
$
|
548
|
|
Depreciation and
Amortization
|
|
|
(87)
|
|
|
—
|
|
|
(87)
|
Interest
Expense
|
|
|
(60)
|
|
|
—
|
|
|
(60)
|
Other Income and
Expenses
|
|
|
—
|
|
|
—
|
|
|
—
|
Income Tax
Expense
|
|
|
(5)
|
|
|
—
|
|
|
(5)
|
Total Net
Income
|
|
|
367
|
|
|
(29)
|
|
|
396
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
|
(39)
|
|
|
—
|
|
|
(39)
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
328
|
|
$
|
(29)
|
|
$
|
357
|
|
|
|
|
|
|
|
|
|
|
A - Primarily merger
related severance costs and inspection and repair costs related to
the Texas Eastern pipeline incident in Pennsylvania.
|
|
B - Primarily
merger-related severance costs
|
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Earnings Reconciliation
|
June 2017
Year-to-Date
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
|
Reported
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
959
|
|
$
|
(37)
|
A
|
$
|
996
|
|
Liquids
|
|
|
130
|
|
|
(3)
|
B
|
|
133
|
|
|
Total Reportable
Segment
EBITDA
|
|
|
1,089
|
|
|
(40)
|
|
|
1,129
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(71)
|
|
|
(35)
|
B
|
|
(36)
|
|
|
Total Reportable
Segment and other EBITDA
|
|
$
|
1,018
|
|
|
$
|
(75)
|
|
$
|
1,093
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,018
|
|
$
|
(75)
|
|
$
|
1,093
|
|
Depreciation and
Amortization
|
|
(172)
|
|
|
—
|
|
|
(172)
|
|
Interest
Expense
|
|
(116)
|
|
|
—
|
|
|
(116)
|
|
Other Income and
Expenses
|
|
1
|
|
|
—
|
|
|
1
|
|
Income Tax
Expense
|
|
|
(10)
|
|
|
—
|
|
|
(10)
|
|
Total Net
Income
|
|
721
|
|
|
(75)
|
|
|
796
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
|
(76)
|
|
|
—
|
|
|
(76)
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
645
|
|
|
$
|
(75)
|
|
$
|
720
|
|
|
|
|
|
|
|
|
|
|
A - Primarily merger
related severance costs and inspection and repair costs related to
the Texas Eastern pipeline incident in Pennsylvania.
|
|
B - Primarily
merger-related severance costs
|
|
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
June 2016
Quarter-to-Date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
406
|
|
|
$
|
(6)
|
|
A
|
$
|
412
|
|
|
Liquids
|
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|
Total Reportable Segment EBITDA
|
|
|
464
|
|
|
(6)
|
|
|
470
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(22)
|
|
|
—
|
|
|
(22)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
442
|
|
|
$
|
(6)
|
|
|
$
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
442
|
|
|
$
|
(6)
|
|
|
$
|
448
|
|
|
Depreciation and
Amortization
|
|
(77)
|
|
|
—
|
|
|
(77)
|
|
|
Interest
Expense
|
|
(56)
|
|
|
—
|
|
|
(56)
|
|
|
Other Income and
Expenses
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Income Tax
Expense
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
Total Net
Income
|
|
305
|
|
|
(6)
|
|
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(18)
|
|
|
—
|
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
287
|
|
|
$
|
(6)
|
|
|
$
|
293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A- Inspection and
repair costs related to the Texas Eastern pipeline incident in
Pennsylvania.
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
June 2016
Year-to-Date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported/Ongoing
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
817
|
|
|
$
|
(6)
|
|
A
|
$
|
823
|
|
|
Liquids
|
|
|
|
114
|
|
|
—
|
|
|
114
|
|
|
Total Reportable Segment EBITDA
|
|
|
931
|
|
|
(6)
|
|
|
937
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(42)
|
|
|
—
|
|
|
(42)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
889
|
|
|
$
|
(6)
|
|
|
$
|
895
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
889
|
|
|
$
|
(6)
|
|
|
$
|
895
|
|
|
Depreciation and
Amortization
|
|
(154)
|
|
|
—
|
|
|
(154)
|
|
|
Interest
Expense
|
|
(112)
|
|
|
—
|
|
|
(112)
|
|
|
Other Income and
Expenses
|
|
2
|
|
|
—
|
|
|
2
|
|
|
Income Tax
Expense
|
|
(9)
|
|
|
—
|
|
|
(9)
|
|
|
Total Net
Income
|
|
616
|
|
|
(6)
|
|
|
622
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(31)
|
|
|
—
|
|
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
585
|
|
|
$
|
(6)
|
|
|
$
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Inspection and
repair costs related to the Texas Eastern pipeline incident in
Pennsylvania.
|
|
|
|
SOURCE Spectra Energy Corp.